EU FINANCIALS: Revised IPT - UBS new issue

• With US yields edging lower alongside the broader negative reaction for ‘Trump trades’ following the WaPo report, USDJPY has fully reversed the prior session rally. Spot traded back below 157.00, and briefly extended its selloff to around 110 pips.
• Plenty of room on the downside should pressure on the greenback persist, with support for USDJPY not seen until 155.89, the 20-day EMA.
• As a reminder, Governor Kazuo Ueda said the BOJ will raise its benchmark interest rate to adjust the degree of easy policy if the improvement in the economy and prices continues, Nikkei reported Monday. Ueda said that the timing of policy adjustments will depend on future economic, price and financial conditions and the BOJ must pay attention to various risk factors.
• US Final Services PMI, Durable Goods and Factory Orders are all due for release today, and FOMC Member Cook will speak at the Conference on Law & Macroeconomics.

• USDCAD has seen two pronounced moves lower overnight, first on local news wire headlines that PM Trudeau may resign this week ahead of a caucus meeting on Wednesday and then the aforementioned WaPo story on more targeted Trump tariffs.
• It sees the pair at 1.4310 (-0.9%) off a low of 1.4300, having last been below 1.43 on Dec 17, currently set for its largest one-day decline since May 2023.
• It has breached support at 1.4336 (Dec 20 low) and 1.4320 (20-day EMA), opening 1.4232 (Dec 17 low) in a test of what had looked like a bullish continuation signal.
• CAD had been outperforming but the broader USD weakness following the Trump headlines has seen it fall behind Antipodeans and EUR for top spot on the day.
• BoC-dated OIS has 19.5bp of cuts priced for the Jan 29 BoC decision. Today sees serv/comp PMIs for December headline the local docket but the main domestic release likely to alter BoC pricing isn’t until Friday’s jobs report.

Package in Bobl, selling out the Feb into March:

OEG5 118.5/119.25/119.75/122.00c condor vs 117.5/116.25ps.

VS OEH4 118/118.5cs vs 117.00p.

Bought the March cs for 5 and 6 in 13k.